Research On The Financial Crisis Of HNA Grou

Since the reform and opening up,China’s economy has entered a stage of rapid development.Some enterprises tend to expand on a large scale to seize diversified investment opportunities or professional field integration opportunities.In order to meet the investment needs of large-scale expansion,the capital chain of enterprises is linked.When the external environment changes,the phenomenon of capital chain fracture will inevitably occur.If the internal financial risk management is improper and the investment,cost and cashflow turnover are out of control,the enterprise will easily fall into the payment crisis or even go bankrupt,which will not only damage the interests of the government,investors,the public and other stakeholders,but also seriously affect the stability of the Chinese market.HNA Group is one example.As a representative private enterprise in the industry,HNA Group sold many assets at a loss,such as aviation,printing,hotel,property and real estate.It has aroused widespread concern and discussion from all walks of life.In view of this,this paper takes HNA Group as the research object,based on the risk dispersion theory,capital structure theory and financial strategy theory,and uses the research methods of literature analysis,case analysis,qualitative analysis and quantitative analysis to build the overall evaluation model of HNA Group’s financial crisis by analyzing the overall situation and financial management situation of HNA Group,Use entropy method and efficiency coefficient method to quantify the degree of financial crisis of HNA Group.The study found that HNA Group has been promoting cross-border diversified expansion since 2016,and the degree of crisis of HNA Group has gradually increased during the expansion.In 2019,the level of crisis is giant police.Through in-depth analysis of the causes of the financial crisis of HNA Group,the study found that HNA Group has problems such as a single financing channel,a high proportion of debt financing,blind and diversified expansion,increased enterprise capital risk,frequent associated transactions,rising financial risk,complex group system,and extremely non-standard internal control.Based on the existing research findings,this paper draws the financial management enlightenment of HNA Group to other enterprises,especially those in the same industry,including reasonable use of leverage and multi-channel financing,focus on main business and avoid blind diversification.Second,reducing related transactions and improving internal control.Third,strengthening financial early warning and diminishing risks.In addition,this paper points out that in view of the financial crisis of HNA Group,the local government and other regulatory departments should learn from experience and lessons,clarify the market positioning and improve the management system.Secondly,conducting due diligence as soon as possible and formulating risk disposal work plan.This study has certain theoretical significance and practical reference value.It can not only enrich the research of financial crisis management in service industries such as air transport industry.It can also provide experience for similar enterprises,promote similar enterprises to truly realize that expansion needs to be moderate,and avoid the recurrence of financial crisis events similar to HNA Group.At the same time,this study can,to a certain extent,predict the financial risks of such enterprises for the regulatory authorities,and also provide reference for the government and relevant departments to prevent the expansion of enterprises similar to HNA Group by borrowing the government label.